Too Much Love for Tencent's Success

Tencent Holdings is collecting mobile users at a rapid pace. But hype about mobile payments is pushing the stock to heights at which investors should brace themselves.

In the fourth quarter, the Chinese Internet giant saw revenue rise 40% year over year, boosted by its dominant position selling virtual paraphernalia in its mobile-games universe. Net profit rose a less impressive 13% due to marketing costs. But that spending is yielding results. Mobile messaging platform WeChat had 355 million users at the end of 2013. QQ,...